TOTAL QUALITY MANAGEMENT (TQM) IN THE TURKISH PUBLIC SECTOR: THE VIEWS OF PUBLIC EMPLOYEES ON PRACTICES, IMPACTS AND
PROBLEMS FOR THE IMPLEMENTATION OF TQM IN TWO PUBLIC ORGANIZATIONS
The Institute of Economics and Social Sciences of
Bilkent University
by
SELİM COŞKUN
In Partial Fulfilment of The Requirement For the Degree of DOCTOR OF PHILOSOPHY IN POLITICAL SCIENCE AND PUBLIC
ADMINISTRATION in
THE DEPARTMENT OF
POLITICAL SCIENCE AND PUBLIC ADMINISTRATION BILKENT UNIVERSITY
ANKARA November, 2002
I certify that I have read this thesis and in my opinion it is fully adequate, in scope and in quality, as a thesis for the degree of Doctor of Philosophy in Political Science and Public Administration.
--- Prof. Dr. Ergun Özbudun (Supervisor)
I certify that I have read this thesis and in my opinion it is fully adequate, in scope and in quality, as a thesis for the degree of Doctor of Philosophy in Political Science and Public Administration.
--- Prof. Dr. Ümit Berkman Examining Committee Member
I certify that I have read this thesis and in my opinion it is fully adequate, in scope and in quality, as a thesis for the degree of Doctor of Philosophy in Political Science and Public Administration.
---
Associate Prof. Dr. Tahire Erman Examining Committee Member
I certify that I have read this thesis and in my opinion it is fully adequate, in scope and in quality, as a thesis for the degree of Doctor of Philosophy in Political Science and Public Administration.
---
Assistant Prof. Dr. Fuat Keyman Examining Committee Member
I certify that I have read this thesis and in my opinion it is fully adequate, in scope and in quality, as a thesis for the degree of Doctor of Philosophy in Political Science and Public Administration.
---
Assistant Prof. Dr. Yılmaz Üstüner Examining Committee Member
Approval of the Institute of Economics and Social Sciences
--- Prof. Dr. Kürşat Aydoğan
ABSTRACT
TOTAL QUALITY MANAGEMENT (TQM) IN THE TURKISH PUBLIC SECTOR: THE VIEWS OF PUBLIC EMPLOYEES ON PRACTICES, IMPACTS
AND PROBLEMS FOR THE IMPLEMENTATOIN OF TQM IN TWO PUBLIC ORGANIZATIONS
Selim Coşkun
Department of Political Science and Public Administration Supervisor: Prof. Dr. Ergun Özbudun
November 2002
Total Quality Management (TQM) has become a popular management approach and system since the 1980s. While it has been adopted by thousands of organizations, the debate on its originality in theory and its relationship with management theory still continues. It can be defined as a management system and approach that has a set of core principles, assumptions, practices, tools and techniques which are systemized into a coherent framework. The studies suggest that TQM theory and practices can be, to a great extent, considered under the scope of management theory. In addition, it makes unique contributions to the management practice.
This dissertation examines the practices, constraints and potential problems for adoption of the quality management in the public sector in the international and the Turkish public sector context. Public sector organizations in many developed countries widely implemented the quality management as a management approach and utilized it as a tool for reforming public sector. TQM became an important part of comprehensive public sector reform efforts.
Some Turkish public organizations have also adopted the quality management. However, unlike some developed countries, it has been implemented at the organizational level rather than being systematic and being part of comprehensive reform efforts.
Although various scholars have been discussing the feasibility and problems related to adoption of TQM in the Turkish public sector, there is very limited empirical research on the practices and problems of the quality management. Thus, a survey is conducted in two pioneering public organizations for adopting the quality
management in order to explore the views of the workforce. The literature proposes that the positive attitude of the employees is one of factors for the success of the quality management initiatives. The findings reveal that the workforce has generally positive views towards the quality management and public sector reforms. The findings also signify that the success and future of the quality management cannot be isolated from the organizational context and approaches to quality management as well as the problems of Turkish political and public administration system.
Keywords: Total Quality Management, Management Theory, Public Sector Reforms
ÖZET
TÜRK KAMU SEKTÖRÜNDE TOPLAM KALİTE YÖNETİMİ (TKY): ÇALIŞANLARIN İKİ KAMU KURUŞUNDA TKY UYGULMALARI, ETKİLERİ
VE PROBLEMLERE İLİŞKİN GÖRÜŞLERİ
Selim Coşkun
Siyaset Bilimi ve Kamu Yönetimi Bölümü Tez Yöneticisi: Prof. Dr. Ergun Özbudun
Kasım 2002
Toplam Kalite Yönetimi (TKY) 1980’lerden itibaren popüler bir yönetim yaklaşımı ve sistemi haline gelmiştir. Binlerce kurum tarafından uygulanmasına karşın, TKY’nin kuramsal bütünlüğü ve yönetim teorisi ile olan ilişkisi tartışılmaya devam edilmektedir. TKY bir dizi ana ilkelere, varsayımlara, öğelere, araç ve tekniklere sahip olan, ve bütün bunları tutarlı bir şekilde bir araya getiren bir yönetim yaklaşımı ve sistemi olarak tanımlanabilir. Çalışmalar, TKY kuramı ve uygulamalarının büyük ölçüde yönetim teorisi kapsamında olduğunu göstermektedir Ayrıca, TKY yönetim bilimi uygulamalarına da değerli katkılar yapmaktadır.
Bu tez, kalite yönetiminin kamu sektöründe uygulamalarını, uygulamadaki kısıtlamaları ve potansiyel problemleri uluslararası ve Türk kamu sektörü çerçevesinde irdelemektedir. Gelişmiş pek çok ülkede kamu kuruluşları kalite yönetimini bir yönetim yaklaşımı olarak geniş ölçüde uyguladılar ve kalite yönetiminden kamunun yeniden yapılanmasında bir araç olarak kullandılar. Kalite yönetimi kapsamlı kamu reformu girişimlerinin önemli bir parçası haline geldi.
Bazı Türk kamu kurumları da kalite yönetimi uygulama yoluna gittiler. Ancak, bazı gelişmiş ülkelerin aksine uygulamalar kurumsal düzeyde olup, sistematik ve kapsamlı reform çabalarının bir parçası olmaktan uzaktır.
Pek çok bilim insanının kalite yönetiminin Türk kamu sektörüne uygulanabilirliğini ve uygulamaya ilişkin problemleri tartışmalarına karşın, kalite yönetiminin uygulamasına ve problemlerine ilişkin sınırlı sayıda alan araştırması bulunmaktadır. Bu nedenle, kalite yönetimini uygulamada öncü iki kamu kuruluşunda kamu çalışanlarının görüşlerini irdeleyen bir alan araştırması yapılmıştır. Literatür, iş gücünün olumlu tutumlarının kalite yönetiminin başarılı bir şekilde uygulamanın ön şartlarından olarak göstermektedir. Araştırma bulguları
çalışanların genel olarak kalite yönetimi ve kamu reformuna ilişkin olumlu görüşlere sahip olduğunu ortaya çıkarmıştır. Ayrıca, bulgular kalite yönetiminin başarısı ve geleceğinin kurumsal şartlardan, uygulamadaki yaklaşımlardan ve Türk kamu yönetiminin ve siyasal sisteminin genel sorunlarından ayrı düşünülemeyeceğine işaret etmektedir.
Anahtar Kelimeler: Toplam Kalite Yönetimi, Yönetim Teorisi, Kamu Reformları
ACKNOWLEDGMENTS
The completion of this dissertation has been achieved by the assistance of a number of people. First, I would like to thank my dissertation supervisor, Prof. Dr. Ergun Özbudun. I especially would like to thank Assistant Prof. Dr. Yılmaz Üstüner who has provided me with guidance and patience. He has shown me the example of brotherhood and friendship while being an outstanding mentor. Without his invaluable support, this dissertation would not have been possible.
I would also like to thank the members of my dissertation committee. I am grateful to Prof. Dr. Ümit Berkman, Associate Prof. Dr. Tahire Erman, and Assistant Dr. Fuat Keyman for their comments and suggestions.
Finally, I appreciate for the help and cooperation of administrators and employees of the Ministry of National Education and the Ministry of Industry and Commerce.
TABLE OF CONTENTS
ABSTRACT ……….. …. iv
ÖZET ……….. vi
ACKNOWLEDGMENTS ………. viii
TABLE OF CONTENTS ……… ix
LIST OF TABLES ………... xii
LIST OF FIGURES ……… xv
INTRODUCTION ……….… 1
CHAPTER I: TQM IN GENERAL 1.1. Introduction ………...……….. 8
1.2. TQM as Management Approach and System ………... 10
1.3. Origins and Historical Development ………. 14
1.4. Main Contributors………. ………….……. 19 1.4.1. W. Edwards Deming………. 19 1.4.2. Joseph M. Juran ………..………….. 26 1.4.3. Phil Crosby ………...……….... 28 1.4.4. Armand F. Feigenbaum ... 31 1.4.5. Genichi Taguchi ...……… 33 1.4.6. Kaoru Ishikawa ………. 34 1.5. The Elements of TQM ……….. 37 1.5.1. Leadership ………. 41
1.5.2. Customer Focus and Satisfaction ……… …………. 44
1.5.3. Human Resources Development and Management………. 46
1.5.4. Information and Analysis (Management by Fact)……… 48
1.5.5. Strategic Quality Planning ……….. 50
1.5.6. Process Management ……….. 51
1.5.7. Quality Results ……… 54
1.6. TQM and Management Theory ……….……. 55
1.6.1. Leadership ………. 64
1.6.2. Information and Analysis ……… 65
1.6.3. Strategic Quality Planning ………... ….. 67
1.6.4. Process Management ………. …. 69
1.6.5. Customer Focus Satisfaction ……… 70
1.6.6. Human Resources Management and Practices ………. 71
CHAPTER II: TQM IN THE PUBLIC SECTOR CONTEXT 2.1. Introduction ……… 76
2.2. Public Sector Reforms and Quality Management ………. . 77
2.3. Public Sector Reforms ……… 80
2.4. Quality Management and Reforms in Europe ………. 87
2.4.1. EFQM Excellence Model and European Quality Award………. 87
2.4.2.Quality Awards at the National Level …..……… 91 2.4.3. The Reforms and Quality Management in Continental Europe… 92
2.4.4. The Reforms and Quality Management in the United Kingdom . 98
2.4.5. TQM Practices in the UK Public Sector ………. 103
2.5. Reforms and Quality Management in Australia and New Zealand. ……… 108 2.5.1. The Reforms ……… 108
2.5.2. The Quality Management Initiatives ……… .. 110 2.6. Quality Management and Reforms and in the United States ……. ………. 112 2.6.1. Quality Management in the US Public Sector ………..….. ……. 112
2.6.2. Quality Management in the Federal Government ……….. 113
2.6.3. Quality Awards at Federal Level . ……..……….…. 117
2.6.4. The President’s Quality Award ……… 119
2.6.5. Quality Management at State and Local Levels……… 122
2.6.6. Reinventing Government and Reforms ……… 124
2.7. Accessing the Impact: Does TQM Make and Difference?……….. 129
2.8. Issues And Constraints for the Adoption of TQM in the Public Sector …. 135
2.8.1. Problems Related to Customer Satisfaction ………... 143
2.8.2. The Issue of Quality vs. Quantity ……… 147
2.8.3. Problems Related to Leadership and Government Culture…….. 148
2.8.4. Problems Related to Long Term Perspective and Strategic Planning ……….. 151
2.8.5. Process Management: The Issue of Services vs. Products ……. 153
2.8.6. Problems Related to Human Resources Practices ………... 154
CHAPTER III: TQM IN THE TURKISH PUBLIC SECTOR 3.1. Introduction ……….. 156
3.2. National Quality Award and Public Sector Version ……….. 159
3.3. The Reform and Quality Management: An Historical Overview… ……… 160 3.4. TQM Practices in the Turkish Public Sector ………. …. 167
3.4.1. Değirmendere Municipality ………. 169
3.4.2. Quality Management Practices in the Military ………… ……… 170
3.4.3. TQM in Ministry of the Industry and Commerce………. 173 3.4.4. TQM in the Ministry of National Education . .………. 176
3.4.5. TQM in the Ministry of Health ……… 179
3.4.6. TQM in Marmara University Faculty of Engineering …………. 181 3.5. The Potential Problems and Constraints for the Implementation ………… 182 3.5.1. Problems Related to Leadership ……….. …………... 184
3.5.2. Problems Related to Planning and Long Term Perspective…… 185
3.5.3. Problems Related to Human Resource Management ……… 186
3.5.4. Problems Related to Information and Analysis .……… 190
CHAPTER IV: THE SURVEY: TQM IN TWO MINISTRİES 4.1. Introduction ……….. 195 4.2. Methods ……… 196 4.2.1. Research Site ……….. 196 4.2.2. Sample ……… 198 4.2.3. Survey Instrument ……… 199
4.3. General Information of Respondents ………. 200
4.4. Attitudes of Workforce Towards TQM ………. 203
4.4.1. The Factors that Affect Employees Attitudes Towards TQM ……… 207
4.5. Views of the Employees on the Necessity of Reforms in the Turkish Public Sector ………. 215
4.6. Views of the Employees on the Success of Quality Initiatives……… 218 4.7. Implementation of TQM Elements ………. 223 4.8. The Comparison of Two Ministries in Terms of Implementation of TQM Elements ……….. 224
4.8.1. Leadership Support ……….. 225
4.8.2. Quality Planning and Long Term Perspective ………. 227 4.8.3. Customer Focus and Satisfaction ……… 229
4.8.4. Human Resources Management ………. 231 4.8.5. Process Management ……….. 233
4.8.6. Information and Analysis ……… 235
4.9. Improvements After Quality Initiatives ……….. 237 4.9.1. Improvements in Productivity and Quality of the Services ……. 238 4.9.2. Improvements in Costumer Focus and Satisfaction ………….. . 240
4.9.2.Improvements in Human Resources Practices ………. 241
4.10. A Relational Model for Elements of TQM and Quality Improvements… 244 4.11. Barriers and Problems for the Implementation of Quality Management .. 247 4.12. Discussion and Implications ……….. 253 CONCLUSION ……… 265
SELECT BIBLIOGRAPHY . .……….. 276
LIST OF TABLES
Table 1.1 TQM Dimensions (Elements) ……… 38
Table 2.1 Usage of Quality Management Techniques in Public and Private Sector Organizations (United Kingdom) .…… ….. 105
Table 2.2 Reported Barriers to Introducing TQM (1992 GAO Survey, USA)………. 117
Table 4.1 Status of Respondents………. 201
Table 4.2 Age of Respondents……….……… 201
Table 4.3 Education Level of Respondents ……… 202
Table 4.4 Tenure of Respondents at Current Positions ……….. 202
Table 4.5 Position- Tenure Crosstabulation ……… 203
Table 4.6 Views of the Respondents on the Necessity and Usefulness of Quality Management in the Public Sector ……… .…. 204
Table 4.7 Views of the Respondents on the Statement that TQM is a Modern Approach that is Applicable to both Private and Public Sector… 205 Table 4.8 Views of the Respondents on the Statement TQM as a Management Philosophy that Focuses on Employee and Citizens Satisfaction.. 205
Table 4.9 Views of the Respondents on the Statement TQM as Management Approach that Aims at Citizens Satisfaction by Continuously Improving Workforce, Services and Processes… 206
Table 4.10 Views of the Respondents Statement TQM as Fad …….…….. 207
Table 4.11 Views of the Respondents on the Statement that TQM as Ideological Tool ………. 207
Table 4.12 T test for the Comparison of Two Ministries in Terms of Respondents Attitudes Towards TQM ……….. .. 208
Table 4.13 ANOVA for the Attitudes of the Respondents from Different Status Towards Quality Management ……… 210
Table 4.14 T- test for Status Groups on the Necessity and Usefulness of TQM in the Turkish Public Sector ……….. ……. 211
Table 4.15 T-test for the Status Groups on the TQM as Fad ……….. 212
Table 4.16 T-test for the Status Groups on the TQM as Management Approach Applicable to both Private and Public Sector ……. 213
Table 4.17 T-test for the Status Groups on the TQM as Ideological Tool... 213
Table 4.18 Correlation of Level of Education with the Views of the Respondents on TQM ……… ……….. 215
Table 4.19 Views of the Respondents on the Necessity of Reform ……… 216
Table 4.20 Views of the of the Possibility of Implementation of TQM Management Under Current Conditions ……… 217
Table 4.21 ANOVA test for the Necessity of the Reform and Implementation Of TQM Under Current Conditions ……….. ……… 217
Table 4.22 Views of the Respondents on the Success of Quality Initiatives In Their Organizations……… 220
Table 4.23 T- test for Views of the Respondents on the Success of Initiatives in Their Ministries ………. 220
Table 4.24 Correlation (Spearman’s rho) Education Level of Respondents and Views on the of Success of TQM Initiatives ……. ……... 221
Table 4.25 Correlation (Pearson Correlation) Tenure of Respondents and
Their Views on the Success of TQM Initiatives ……… 221 Table 4.26 ANOVA for Status of the Respondents and Their Views on the
Success on TQM Initiatives ……… 221 Table 4.27 T- test for Status of Respondents and Their Views on Success of
Quality Initiatives ……… 222 Table 4.28 Correlation on Views of the Respondents on the Success and
Necessity of Quality Initiatives ………. 223 Table 4.29 Partial Correlation Coefficients on Views of the Respondents
on the Success of Quality Initiatives (Controlling for Ministry). 223 Table 4.30 Scale Reliability and Factor Analysis Results for Elements
of TQM ……….. 224
Table 4.31 Views of the Respondents on the Leadership Support
(As Percentage, the Ministry of Industry & Commerce) … …. 226 Table 4.32 Views of the Respondents on the Leadership Support
(As Percentage, the Ministry of National Education)………… 226 Table 4.33 T-test for the Views of the Respondents from Two Ministries
on the Leadership Support………. ……….. 226 Table 4.34 Views of the Respondents on the Quality Planning and
Long Term Perspective (As Percentage, the Ministry of Industry & Commerce)……….. 228 Table 4.35 Views of the Respondents on the Quality Planning and Long Term
Perspective (As Percentage, the Ministry of National Education). 228 Table 4.36 T-test for Views of the Respondents from Two Ministries on the
Quality Planning and Long Term Perspective ……….. 229 Table 4.37 Views of the Respondents on the Customer Focus and Satisfaction
(As Percentage, the Ministry of Industry & Commerce) …….. 230 Table 4.38 Views of the Respondents on the Customer Focus and Satisfaction
(As Percentage, the Ministry of National Education)… …. …. 230 Table 4.39 T-test for Respondents Views from Two Ministries on the
Customer Focus and Satisfaction ……… 231 Table 4.40 Views of the Respondents on the Human Resources Management
(As Percentage, the Ministry of Industry & Commerce) …. …. 232 Table 4.41 Views of the Respondents on the Customer Focus and Satisfaction
(As Percentage, the Ministry of National Education)………….. 232 Table 4.42 T-test for Views of the Respondents from Two Ministries on Human
Resources Management ………... 233 Table 4.43 Views of the Respondents on the Process Management (As
Percentage, the Ministry of Industry & Commerce) ……… 234 Table 4.44 Views of the Respondents on the Process Management (As
Percentage, the Ministry of National Education) ………. 234 Table 4.45 T-test for Views of the Respondents from Two Ministries on Process
Management ……….. …………. 235 Table 4.46 Views of the Respondents on the Management By Fact (As
Percentage, theMinistry of Industry & Commerce) ………. 236 Table 4.47 Views of the Respondents on the Management By Fact (As
Table 4.48 T-test for Views of the Respondents from Two Ministries on
Management by Fact ………... . 237 Table 4.49 Scale Reliability and Factor Analysis for the Improvements
After the Quality Management Initiatives ………. 238 Table 4.50 The Perceived Improvements in Productivity and Service Quality
(As Percentage) ……….…. 239 Table 4.51 T- test for Improvements in Productivity and Service Quality for
Two Ministries ……….. 240 Table 4.52 The Perceived Improvements in Customer Focus and Satisfaction
(As Percentage) ………. 241 Table 4.53 T- test for Improvements in Customer Focus and Satisfaction for
Two Ministries ……….. 241 Table 4.54 The Perceived Improvements in Human Resources Management
Practices (As Percentage) ……….. 242 Table 4.55 T- test for Improvements in Human Resources Management for
Two Ministries ……… 243 Table 4.56 Model Summary for the Leadership and Other Five Elements of
TQM ……… 244 Table 4.57 Model Summary for the Productivity and Quality Improvement
And Six Elements of TQM ……… 245 Table 4.58 Model Summary for the Customer Focus and Satisfaction
Improvement And Six Elements of TQM ………... 245 Table 4.59 Model Summary for the Human Resources Improvement
And Six Elements of TQM ……… ………… 245 Table 4.60 The Problems Viewed as “Important” by Respondents from
Ministry Of Industry and Commerce..…………..……….. 248 Table 4.61 The Problems as “Partially Important” by Respondents from
Ministry of National Education……… 249 Table 4.62 The Problems that Respondents from Both Ministries Gave
Similar Responses ……… ……….. 250 Table 4.63 The Problems that Respondents from Each Ministry Gave
Different Responses ……….. ……… 252
LIST OF FIGURES
Figure 1.1 Baldrige Award Criteria Framework Dynamic Relationship…... 40 Figure 2.1. EFQM Excellence Model……….. 88 Figure 4.1 A Relational Model for TQM Elements and Improvements …… 246
1 INTRODUCTION
Total Quality Management (TQM) has become a popular management approach and system since the 1980s. Following the private sector organizations, public sector organizations utilized quality management as a modern management approach for reforming their management. The main purpose of this dissertation is to examine the implementation of the quality management in the public sector in the light of quality management practices and discussions in both international and Turkish public sector context.
Although TQM has been widely implemented in both private and public sector organizations, the debate on its originality in theory and contributions to the practice still continues. For this reason, the first part of the dissertation discusses the origins of TQM, the ideas of the main contributors, the elements of TQM, and its relation with management theory in general and at the topic specific levels.
While not refusing other interpretations such as TQM as quality management, as systems management, as people management, as re-engineering1, in this dissertation, TQM is defined as the management system and approach that has a set of core principles, assumptions, practices, tools and techniques, which are systemized into a coherent framework.2
The content analysis of the studies of the quality gurus as well as the Baldrige and other quality models, which are based on the ideas of the quality
1 Josephine Yong and Adrian Wilkinson, “Rethinking Total Quality Management.” Total Quality
Management. 25: 2 (2001), 247- 259.
2 Richard Hackman and Ruth Wageman, “Total Quality Management: Empirical, Conceptual and
2
scholars, indicate the elements of the TQM as leadership, customer focus and satisfaction, human resources development and management, information and analysis (management by fact), strategic quality planning, and process management.3 Based on the studies at both topic specific level for these elements and general level, it is suggested that TQM theory and practices can be considered under the scope of the management theory.4 In addition, TQM has unique contributions to management literature. Hence, its major contribution is that it enables the operationalization of ideas of many management theorists such as Taylor, Fayol, Mayo, and McGregor in to the practice under TQM framework.5
The second part of the dissertation summarizes the practices of quality management as a part of public sector reforms in some developed countries and discussions on the potential barriers and constraints for the adoption of quality management in the public sector. Most developed counties have launched massive public sector reforms since the 1980s. These reforms have changed the structure as well as the management of the public administration system. Quality management became an important tool and technique for these reforms.6 While governments of
3 A. Rao and et al, Total Quality Management: A Cross Functional Perspective (New York: Wiley,
1996), Subra S. Rao, Lues E. Solis, and T. S. Raghunathan T.S., “A Framework for International Quality Management Research: Development and Validation of a Measurement Instrument.” Total Quality Management. 10: 7 (2002), 1047- 1075. Dale G.B., P.Y. –Wu, M. Zairi, A.R.T. Williams, and T.Van Der Weile, “Total Quality Management and Theory: An Exploratory Study of Contribution.” Total Quality Management 12:4 (2001), 243- 245.
4 James W. Dean and David E. Bowen, “Management Theory and Total Quality: Improving Research
and Practice Through Theory Development,” Academy of Management Review, 19:3 (2002), 392- 418.
3
developed countries utilized the quality management as a part of reforming public sector management, the relationship between quality management and reforms differed due to political, cultural and administrative context. For example, in the United States, the quality management became an official management approach for the Federal institutions in the latter half of 1980s. The reforms under the title of “reinventing government” usually followed the quality management initiatives. Similarly, British government utilized the quality management as a tool for reforming the management of the public organizations. Yet, in Britain, comprehensive reforms, which started in late 1970s, preceded the quality management initiatives. Continental European counties also utilized quality management tools and techniques in lesser or greater extent.
Quality gurus use a generic approach by arguing that TQM can be applicable to both private and public sector organizations.7 However, some scholars point out the constraints and potential problems for the adoption of quality management in the public sector. They argue that these barriers originate from the nature of the public
6 Ian Kirkpatrick and Miguel Martinez Lucio, “Introduction: the Politics of Quality in the Public
Sector,” in the Politics of Quality in the Public Sector, ed. Ian Kirkpatrick and Miguel Martinez Lucio (London and New York: Routledge, 1995), 1-15. Ian Kirkpatrick and Miguel Martinez Lucio, “The Uses of Quality in the British Government’s Reform of the Public Sector,” in the Politics of Quality in the Public Sector, ed. Ian Kirkpatrick and Miguel Martinez Lucio (London and New York: Routledge, 1995), 16-43.
7 Edwards W. Deming, Out of the Crisis (Cambridge: MIT Center for Advanced Engineering Study,
1994), 6. Armand Feigenbaum, “Managing Improvement in the U.S. Government.” National Productivity Review. 13: 1 (1993), 7-11.
4
sector or quality management itself.8 On the other hand, they generally agree that quality management can be used as a management approach in the public sector organizations to create more effective and responsive public administration.9
The third part of the dissertation includes the reforms, the quality management practices, and discussions on the potential problems for the quality management initiatives in the Turkish public sector. Turkish private sector organizations have began to be to concerned with the quality management since the beginning of the1990s. Quality management has been implemented in many areas, from banking10 to higher education.11 Some Turkish public sector organizations have also initiated some kind of quality management practices since the second half of the 1990s. Yet, unlike some developed countries where the quality management became a part of systematic efforts to transform the public administration, the
8 Michael E. Milakovich, “Total Quality Management for Public Sector Improvement,” in Public
Productivity Handbook, ed. Mark Halzer (New York: Marcel Dakke, 1992), 577-603, Berly A. Radin and Joseph N Coffee, “A Critique of TQM: Problems of Implementation in the Public Sector.” Public Administration Quarterly, 17:1 (1993), 42- 53. William V. Rago, “Adopting Total Quality Management (TQM) to Government: Another Point of View.” Public Administration Review. 54 :1 (1994), 61- 64. James E. Swiss, “Adopting TQM to Government.” Public Administration Review. 52: 4 (1992), 352-356.
9 Colin Morgan and Stephen Murgatroyd, Total Quality Management in the Public Sector
(Buckingham: Open University Press, 1994), 59- 60.
10 Kemal Mellahi and Feyaza Eyupoglu, “Critical Factors for Successful Total Quality Management
in Turkey.” Total Quality Management. 12:6 (2001), 745- 756.
11 Gülten Hergüner and N.B.R. Reeves, “Going Against National Cultural Grain: A Longitudinal
Case Study of Organizational Culture Change in Turkish Higher Education.” Total Quality Management. 11:1 (2000), 45-56, Ümit Berkman, “Toplam Kalite Yönetimi ve Örgütsel Davranış: Bir Uygulamaya İlişkin Bazı Gözlemler ve Değerlendirmeler,” in 21. Yüzylda Nasıl Bir Kamu Yönetmi Sempozyumu, Örgüt ve Deşişme Grubu Bildirileri in Ankara, Türkiye, 7-9 Mayıs 1997, by Türkiye ve Ortadoğu Amme İdaresi Enstitüsü, (Ankara, TODAİE, 1997), 34-39.
5
quality management in Turkey has been implemented at the organizational level. This part of dissertation analyzes reform initiatives, the practices and potential problems of quality management in the Turkish public sector. In terms of the practices of quality management, one important reality needs to be mentioned. While the quality management practices in some organizations such as the Ministry of Industry and Commerce, Military, and Değirmendere municipality were summarized through literature review, there were few written documents for some initiatives, i.e. the Ministry of National Education, or no document at all, i.e. the Ministry of Health. The public servants generally restrained from providing written documents. Therefore, the personal interviews were conducted with the related personnel in order to review the quality management practices in these organizations.
Although various scholars and practitioners have been discussing the feasibility and the problems related to adoption of quality management in Turkish public sector, the literature survey initially conducted showed that there was very limited empirical research on problems and prospects of the quality management. Thus, the fourth part of the dissertation involves a survey conducted in two public sector organizations. These two institutions were chosen as a survey field for various reasons. These two organizations were unique in the sense that they claimed to adopt quality management in their central units. They also utilized different approaches and models for the implementation in different organizational context. The related literature suggests that the knowledge and positive attitudes of the workforce
6
towards the quality management is a crucial factor for the future and success of quality management.12 Thus, the survey aimed to explore and compare the views of the public employees in many areas such as their views on the quality management and reforms, the implementation of elements of quality management, problems for the quality management initiatives, and finally the perceived improvements after quality management initiatives.
The survey findings reveal that the majority of respondents from both organizations have positive views towards the quality management and a comprehensive reform for the Turkish public sector. On the other hand, the respondents have different opinions on the success and the practices of the elements of quality management in their organizations. This might be explained with the different models and approaches utilized by the organization. It might also result from the different organizational context in which the quality management is adopted. Despite the differences in the practices of quality management, the respondents in both organizations claimed that there have been improvements after the implementation of quality management initiatives. In terms of the potential problems and constrains for the implementation, the ministries have both similarities and differences. Yet, some problems appeared to be more important in both ministries. Some of these problems are budgetary constraints and inadequate resources, lack of long-term perspective, inadequate intra-organizational
12 Arvinder P.S. Loomba and Michael S. Spencer, “A Model for Institutionalizing TQM in a State
Government Agency.” International Journal of Quality and Reliability Management. 14 (8) (1997), 758. Gerald Zeitz, “Employee Attitudes Towards Total Quality Management in an EPA Regional Office.” Administration and Society. 28 (1) (1996), 121.
7
communication, problems originated from public personnel system, etc. The findings suggest that the success and future of quality management initiatives are contingent upon the approaches for the implementation of quality management and the organizational context in particular and political and public administration system in general.
The final part of the dissertation includes the conclusions and implications for the literature review and the survey sections. This dissertation will first contribute to the discussions on the theoretical integrity of quality management and its relation to the management theory. Second, it will provide a better understanding of quality management practices in the public sector as part of public sector reforms in various Western counties. Third, it will give useful information to both researchers and public administration practitioners by discussing potential issues and constraints for the adoption of quality management in international and Turkish public sector context. Most importantly, considering the very limited research in the Turkish public sector on the adoption of quality management, it is expected that this dissertation will provide useful insights on the views of public employees about a set of issues ranging from their views on quality management and reforms to the problems and practices of quality management in two public organizations.
CHAPTER I: TQM IN GENERAL 1.1. Introduction
Although Total Quality Management (TQM) has been widely adopted by various organizations, both private and public, and thousands of books and articles have been written on the subject, there is no single definition of TQM that all authors have agreed upon.13 Similarly, numerous writings and conferences have raised questions about theoretical integrity, feasibility and appropriateness of TQM. As White and Wolf indicate no business innovation since scientific management itself has created the vague that surrounds TQM.14
Some critiques argue that TQM is nothing new but "the resurrection of Taylorism" and "apotheosis of scientific management.” They believe that TQM revitalizes the principles of Taylorism under the rhetoric of new ideas and concepts. Although TQM seems to support the empowerment and full participation of the whole workforce, it creates uniformity everywhere, not only in the production system and in the human culture of organization but also externally in the behaviors of suppliers, customers and the educational system.15 Similarly as a critique of quality management, Tuchman sees TQM not only a
13 Ruth J. Boaden, “What is Total Quality Management… And Does It Matter?” Total Quality
Management. 8: 4 (1997), 153- 182.
14 Orion F. White and James F. Wolf. “Deming’s Total Quality Management and the Baskins Robbin
Problem Part 1: Is It Time to Go Back to Vanilla?” Administration and Society. 27: 2 (1995), 204.
15 Helga Drummond. “Beyond Quality.” Journal of General Management. 18: 1 (1994), 72. David
Boje and Robert D. Winsor. “The Resurrection of Taylorism: Total Quality Management’s Hidden Agenda.” Journal of Change Management. 6: 4 (1993), 57-60
management philosophy and approach but also as a new managerial ideology for worker control and a part of a broader project of managerial and political control of the “New Right.” He believes that the New Right ideology tries to impose the market as the expansion of freedom coupled with a new form of bureaucracy synonymous with inefficiency and waste. He also argues that the notion of citizenship has been increasingly reconstructed as the customer on the market by quality management.16
Bounds and et al state that there is neither complete agreement on the definition of TQM nor how to put the concept into practice due to at least three reasons. First of all, it is an evolving approach that is changing as new concepts and methods are developed. Secondly, different organizations are in the different stage of transforming to TQM. Finally, different organizations may require different forms of TQM.17 They define TQM as "a people focused management system that aims at continual increase in customer satisfaction. It is a total system approach (not a separate program) and an integral part of high level strategy. It works horizontally across functions and departments, involving all employees top to bottom, backwards and forwards to include the supply chain and the customer chain."18 Furthermore, the authors see TQM as a paradigm shift and a way of life
16 Alan Tuckman, “Ideology, Quality and TQM,” in Making Quality Critical, ed. Adrian Wilkinson
and Hugh Willmott (New York and London: Routledge, 1995), 57.
17 Bounds and et al, Beyond TQM (New York: McGraw- Hill, 1994), 4. 18 Ibid., 4.
consisting of three themes: customer value strategy, cross- functional systems, and continuous improvement.19
Martin evaluates TQM as “the first and foremost a philosophy of management".20 This is what makes TQM different from previous managerial waves. Those managerial waves like Management by Objectives (MBO), Zero-based Budgeting (ZBB) were essentially tool Zero-based systems. On the contrary, TQM is a philosophy of management that requires transformation of the organizational culture. He indicates that TQM attempts to synthesize the analytical and working smarter aspects of scientific management and group and employee focus of human relations school.21 Similarly, Hill identifies the “soft” and "hard" forms of TQM. "Soft TQM" emphasizes on the employee participation to deliver quality goods and services to both external and internal customers. "Hard TQM " uses traditional tools and techniques of quality control and corresponds to management by fact. According to the author, the "real TQM" includes both types.22
1.2. TQM as Management System and Approach
In a recent study, Yong and Wilkinson identify five rationalizations of the TQM phenomenon. These classifications are based upon not only the ideas of
19 Ibid., 4.
20 Lawrence L. Martin, Total Quality Management in Human Service Organization (Newbury Park:
Sage Publications, 1993), 10.
21 Ibid., 10-11.
22 Stephen Hill, “From Quality Circles to Quality Total Quality Management,” in Making Quality
original gurus such as Deming, Juran, Ishikawa and Feigenbaum but also interpretations and perceptions of TQM that have since developed. These interpretations are TQM as quality management, TQM as systems management, TQM as people management, TQM as new management paradigm, TQM as re-engineering.23 Not ignoring all these interpretations and based on the studies of various scholars24 in the context of this dissertation, TQM will be defined as a management system and approach that has been developed by the ideas and contributions of some quality gurus such as Deming, Juran, Ishıkawa and other contributors. It provides a set of core principles, assumptions, practices and tools and techniques that are systemized into a coherent framework. Almost all quality gurus share the view that an organization’s ultimate purpose is to stay in business. By this way, it can generate products and services that are useful to customers, and provide satisfaction and growth of organization members. In the long run, it promotes the stability in the community.25
TQM has also core assumptions about quality, people, top management, and organization.26 Its first assumption is about quality. Quality is defined in terms of customer satisfaction. All quality initiatives must begin with an understanding of customer perceptions and needs. Producing quality goods is
23 Yong and Wilkinson, “Rethinking,” 247.
24 Hackman and Wageman, “Total,”, Dean and Bowen, “Management,”, David D. Carr and Ian D.
Littman, Excellence in Government: Total Quality Management in 1990s (Arlington: Coopers & Lybrand, 1990).
25 Deming , Out. 1-18, Kaoru Ishikawa, What is Total Quality Control? The Japanese Way
(Englewood Cliffs: Prentice- Hall, 1985), 1.
26 Hackman and Wageman, “Total,”, 10-11, Barbara A. Spencer, “Models of Organization and Total
assumed to be less costly than the cost of poor quality due to inspection, rework and loss of customers. Therefore, quality must be established in the process first time rather than inspecting after the job done. The second assumption is about people. Similar to McGregor's theory Y, people are assumed to naturally care about the work they do and take initiatives as long as the management provides them necessary training and education. Therefore, employees must be empowered to make decisions, to build relationship, and to take necessary steps to improve quality.27 The third assumption is about top management. It is believed that quality is ultimately under the responsibility of top management. Management's role is to create a system that produces high quality goods and products. Employees’ work effectiveness is the outcome of the systems that top management creates.28 The fourth assumption is about organizations. Organizations are seen as the open systems interacting with and dependent on their environments. TQM blurs the boundaries between organization and environment. Entities normally regarded as outsiders such as suppliers and customers are considered part of the organizations. For example, Deming's "flow diagram" sees the production as a system and begins with suppliers and ends with consumers.29
Douglas H. Vinzant, “Strategic Management and Total Quality Management.” Public Administration Quarterly, 20: 2 (1996), 205-210.
27 Patrick E. Connor, “Total Quality Management: A Selective Commentary on Its Human
Dimension.” Public Administration Review. 56: 7 (1997), 503.
28 J. M. Juran, Juran on Leadership on Quality (New York: The Free Press, 1989), chapter 4,
Masaaki Imai, Kaizen: The Key to Japan’s Competitive Success (New York: McGraw- Hill, 1989, 5-7, Ishikawa, What is. 5-7. Deming, Out. 25-26.
It is generally accepted that TQM has three principles, which are customer focus, continuous improvement and total participation.30 Each principle is supported by a set of practices (Hachman and Wageman call as “interventions”). Then each practice is supported by a number of techniques to effectively perform each principle.31
The first principle is the customer focus and satisfaction. The aim of satisfying customer is vital for TQM and it is the organizations' duty to produce goods and services that delight the customers. The customer focus provides a common goal for all organization members because it is believed that customer satisfaction is the key factor for the long term survival of every organization. Practices exploring customer needs and expectation include promoting direct contact with the customer, and collecting information about the customers. Some techniques such as customer surveys and focus groups are utilized to accomplish these practices.
The second principle is the continuous improvement. This includes the improvement of each work processes and the organizational system as a whole. Since the expectations and needs of customers change and increase continuously, organizations have to improve the work processes and the work system day to day. Relevant practices are process and work analysis, reengineering and PDCA cycle. There are many tools and techniques that can be used for these practices:
30 Dean and Bowen, “Management,” 394-395, Rao and et al., Total. vii-viii, Adrian Wilkinson,
Graham Godfrey and Mick Marghington, “Bouquets, Brickbats, and Blinkers: Total Quality Management and Employee Involvement in Practice.” Organizations Studies, 13: 1, (1991), 800.
Flowcharts, Pareto analysis, fishbone diagrams, control charts, scatter diagrams, etc.
Continuous improvement and customer satisfaction requires total participation of all organization members from top to bottom, and the suppliers as well as the customers. It is called total participation. The practices for this principle include group skills training, forming all types of teams including quality and cross functional teams. Team building techniques such as brainstorming and role clarification are relevant to these practices.
All there principles are closely related with one other. Continuous improvement is necessary for the customer satisfaction that requires full participation of all relevant units. As a result, TQM does not only consist of some tools and techniques (as Hill calls hard aspect of TQM) or human relations practices (soft aspect of TQM) but it is a total system and approach bases on interrelated assumptions, principles, and practices and techniques to support these principles.
1.3. Origins and Historical Development
There are mainly two different views on the original roots of TQM. The first group sees the quality management as an extension of Taylor's scientific management.32 According to the second group, TQM has its origins on the works of the Walter A. Shewhart in 1930s and later the studies and contributions of the
32 Boje and Winsor, “The Resurrection,” 57, Paul S Adler, “Time and Motion Regained.” Harvard
Business Review. 71: 1 (1993), 97, Robert F. Flood, Beyond TQM (Chishister: John Wiley & Sons, 1993), 5-6, Malcolm Warner, “Japanese Culture, Western Management and Human Resources in Japan.” Organization Studies. 15: 4, 1994, 426.
Deming, Juran, Ishikawa, and other quality gurus.33 On the other hand, both groups agree that TQM evolved and changed by the time with the contributions of the some scholars and institutions. The first group indicates that the Japanese modified Tayloristic principles and other Western management practices into the Japanese unique culture. For example, Boje and Winzor argue that Japanese borrowed the management principles and practices of the West early in the1900s and synthesized it into Samurai tradition of constant learning and training, and village tradition of mutual help.34 Similarly, Juran refutes the "chauvinistic notion" that two Americans (Juran and Deming) solely responsible for the quality revolution in Japan . On the contrary, he declares that “the unsung heroes of Japanese quality revolution were the Japanese managers”.35 Warner synthesizes both views in a clear manner. He believes that the Japanese ultimately improved on the theories and practices originally imported and many of them such as TQM are being re-exported back to the West.36
Whether TQM is an original approach or "the resurrection of Taylorism”, it is generally accepted that the modern quality movement is traced back to system known as modern quality control or statistical process control (SPS)
33 Deming, Out. 486-492.
34 Boje and Winsor, “The Resurrection,”, 53.
35 J.M. Juran, “Made in U.S.A.: A Renaissance in Quality.” Harvard Business Review, (July/ August,
1993), 44.
36 Malcolm Warner, “Japanese Culture, Western Management and Human Resources in Japan.”
which is created by Walter A. Shewhart in 1930s.37 Shewhart published his book titled "Economic Control of Quality of Manufactured Product" in 1931. During World War II, quality specialists who refine the Shewhart’s approach to improve the quality and productivity of American war products formed American Society for Quality Control.38 The import of these approaches to Japan was made by the US occupation forces because of the inefficiency of the Japanese telephone system. They began to cultivate interest in quality control in their programs of reconstruction. In 1950, the Union of Japanese Scientists and Engineers (JUSE) invited Dr. Deming to lecture in Japan. He gave a series of lectures to Japanese Engineers about the quality control and to top management on management tasks and responsibilities. Ishıkawa estimates that the outline of the Deming seminar included: 1) how to use cycle of Plan, Do, Check, Action (PDCA or so called Deming Cycle) to enhance quality and to sustain continuous process improvement, 2) the importance of dispersion in statistics, 3) Process control through the use of control charts and how to use it.39 Later, Juran was invited to Japan in 1954. He conducted seminars for top management and middle level managers, explaining them the roles they had to play in promoting quality control activities. In practice, this meant teaching quality to top and middle managers.40
From 1955 through 1960s the ideas of the both Deming and Juran spread rapidly in major firms, but with an important on the part of the Japanese. In the
37 Tuchman, “Ideology”, 59, Josephine Yong and Adrian Wilkinson, “The Long and Winding Road:
The Evolution of Quality Management.” Total Quality Management. 13: 1 (2002), 107.
38 Flood, Beyond. 7. 39 Ishikawa, What is. 7.
Japanese reinterpretation, each and every person in the organization, from top to bottom, received exposure to statistical quality control and techniques. They jointly participated in study groups by upgrading quality control practices. This was both the simple and the most profound twist to the original ideas prorogated by Western experts. Quality control shifted from being responsibility of the minority of the engineers to being responsibility of whole workforce. JUSE took the lead in involving the employees in solving quality problems. JUSE published the magazine Genga to QC (Quality Control for Foreman) in 1962. The magazine increased its subscription from 6.000 in 1962 to around 70.000 by mid- 1970s.41 Training programs began using not only conventional textbooks but also radio and television series. For example, in 1957 the Japan Broadcasting Corporation started to broadcast Quality Control programs as part of its educating program.
The Japanese contribution to Total Quality Management can be summarized as follows: 1) company-wide quality control: participation by all members of the organization in quality control, 2) the top management took the personal charge of managing quality, 3) training all workforce for the quality management 4) nation-wide quality control promotion activities, e) utilization of statistical methods, 5) the workforce was enlisted in quality improvement through the quality circle concept.42 As Imai argues quality control is introduced to Japan
40 Yong and Wilkinson, “the Long,” 108.
41 Robert Cole, “Work Reform and Quality Circles and in Japanese Industry,” in Critical Studies
Organization and Bureaucracy, ed. Frank Fisher and Carmen Sirianni (Temple University Press: Philidelphia, 1984), 425.
by Deming and Juran but Japanese has subsequently developed most of the new concepts, systems, tools that are used in Japan today.43
By the late 1970s onwards experienced under-performing Western industry dominated by Japanese producers, particularly in car and electrical industry. As a result of this, TQM tools and practices regained recognition in 1970s in the West.44 At the beginning many Western organizations tried to introduce the TQM tools alone such as quality circles, but most of them failed.45 However, from the second half of the 1980s, both private and public agencies realized the necessity of the total approach to quality management. In the USA, developed as the American equivalent of the Japan's Deming Award, which was established as early as 1951, the Baldride award was created to motivate American Industry to consider quality as a key component in attaining global competition. Federal Quality Institute was established in 1988 and TQM has been officially mandated as the management and organization policy of the United States Military During Bush administration, Executive Order 12637 directed all Federal agencies to develop programs to enhance quality and productivity. To recognize outstanding efforts, the US government initiated the President’s Quality Award and Federal Quality Improvement Award (FQI).46 Similarly, In Europe many national governments formed their TQM institutions and quality
43 Imai, Kaizen. 5.
44 Tuckman, “Ideology,” 67, Yong and Wilkinson, “The Long,” 114. 45 Carr and Littman, Excellence. 25.
46 Laura A. Wilson and Robert F. Duran, “Evaluating TQM: The Case for a Theory Driven
awards. European Foundation for Quality Management (EFQM) was created in 1992 to guide public and private sectors and recognize best practices. Today, many countries, from India to South Africa, have national quality awards.47
1.4. Main Contributors
Many scholars contributed to the evolution of TQM in both the United States and Japan. The initial success of the quality movement has been attributed to the two sages: E. Edwards Deming and Joseph Juran. Later others contributed to the movement: Ishikawa and Taguchi in Japan, and Crosby and Feigenbaum in the United States are the most cited quality experts
1.4.1. W. Edwards Deming
TQM was developed and has been shaped by a number of key thinkers but it is perhaps most closely associated with the ideas of W. Edwards Deming.48 He was the first American to introduce the quality management principles to Japanese on a large scale after invited by the Japanese Union of Scientists and Engineers (JUSE). In 1951, JUSE established Deming Price that has been awarded to who has achieved excellence in research in theory or application of statistical quality control and those who made remarkable contributions to the dissemination of statistical quality control methods. In 1960, Japan's Emperor
47 Tan Kay Chaun and Lim Chai Soon, “A Detailed Trend Analysis of National Quality Awards
World- Wide.“ Total Quality Management. 11: 8 (2000), 1065- 1080.
awarded Deming the Second Order Medal of Secret Treasure.49 There are some books and articles that explore his management method as well as social and political implications of his theory.50
Deming explores his 14 points management method in his book titled " Out of the Crisis" first published in 1986. He indicates that 14 points are the basis of the transformation of American Industry. Deming says that his method formed the basis of the lessons for the top management in Japan in 1950 and subsequent years.51 In other words, the evolution of Deming management method is a gradual process spanning four decades experience of consulting in both Japan and Unites States. He explores his management philosophy under 14 points, which is applicable for every organization small and large, public and private. His 14 points will be summarized as fallow:52
1. Create constancy of purpose toward improvement of product and service so that the organizations become competitive, stay in business and provide jobs. This is the summary of the Deming' s chain reaction that, Deming indicates, was on the blackboard of every meeting in Japan from 1950 onward.53
49 Rafeal Aquaya, Dr. Deming the Man Who Though the Japanese About Quality (London: Mercury
Books, 1991), vii.
50 Aquaya, Dr. Deming., Marry Walton, The Deming Management Method (London: Mercury Books,
1989), White and Wolf, “Deming’s Part 1,”, Orion F. White and James F. Wolf, “Deming’s Total Quality Management and The Baskin Rabbins Problem Part 2: Is This Ice Cream American?” Administration & Society. 27: 3 (1985), 307- 321, Wiiliam W. Scherkenbach, The Deming’s Route to Quality and Productivity: Road Maps and Roadblocks (Roccville: Mercury Press, 1992), J.C. Anderson, M. Rugtusanatham, and R.C. Schroeder, “A Theory of Quality Management Underlying the Deming Managagement Method.” Academy of Management Review. 19: 3(1994), 472- 509.
51 Deming, Out. 23. 52 Ibid., 23-96.
2. Adopt the new philosophy: Deming indicates that we are in a new economic age. Therefore, Western management must awaken to this challenge, must learn their responsibilities, and take on leadership for change. 54
3. Cease dependency on inspection to achieve quality: This requires elimination of the need for inspection on a mass basis by building quality into the product in the first place. According to Deming quality comes not from the inspection, but from the improvement of the production processes. Inspection does not improve quality, or guarantee it. It is costly, unreliable and ineffective.55
4. End the practice of awarding business on the basis of the price tag: Companies must try to minimize total cost by contracting with a single supplier for one item by establishing a long term relationship of loyalty and trust. The purchasing department must change its focus from the lowest initial cost to lowest total cost. To do this, the organizations should establish a long term relationship with a single supplier.56
5. Improve continuously the system of production: In order to constantly decrease the costs and to improve quality and productivity, it is necessary to improve constantly and forever the system of production. Deming proposes that vast majority of the quality problems is due to common causes that are system
53 Ibid., 3
54 Ibid., 26 55 Ibid., 28-29. 56 Ibid., 31-32.
based. Managers are responsible for correcting system based causes of the performance because these problems are beyond the ability of the workers.57
6. Institute training on the job: Every member of the organization should be trained continuously. Deming argues that “ the greatest waste” in an organization is failure to use full ability of people. Therefore, the employees should be trained in a continuous manner.58
7. Adopt and institute leadership: The job of the management is not supervision, but leadership. Management must work on the sources of the improvement. The aim of the leadership should be to improve the performance of man and machine, to improve quality, to increase output, and simultaneously to provide pride of workmanship to people. Deming claims that management is responsible for over 90 percent of quality problems because it is the responsibility of management to create a stable system.59
8. Drive out fear: In order to everyone works effectively for the company, the management should create a workplace where the employees use full potentials. To do this, Deming proposes to eliminate the performance appraisal system because it lacks the ability to measure the performance of workers and creates fear among the workers.60
57 Ibid., 41
58 Ibid., 53. 59 Ibid., 54. 60 Ibid., 59- 60.
9. Breakdown barriers between departments: People in various sections must work as a team. Teamwork is solely needed throughout the company.61
10. Eliminate slogans, exhortations, and targets for the workforce: Such things only create adverse relationship among the workforce. Majority of the low productivity and low quality are due to system deficiencies and lie beyond the control of the workforce. Deming indicates that variation is the enemy of the quality and over 90 percent of it belongs to system.62
11a. Eliminate work quotas on the factory floor and substitute leadership: Deming indicates that the quotas are barriers for improvement and productivity.63
b. Eliminate management by objective, management by numbers and numerical goals: Substitute leadership. Deming believes that goals set without a method is useless.64
12. Remove barriers that rob the hourly worker of his right to pride workmanship: The responsibility of supervisors must be changed from sheer numbers to quality. Deming believes that the employees are taken responsible for quality problems that are not under their control by merit rating. So, he suggests that merit rating and management by objective should be abolished.65
61 Ibid., 62-63. 62 Ibid., 65-66. 63 Ibid., 71. 64 Ibid., 75. 65 Ibid., 77.
13. Institute a vigorous program of education and self improvement: Every organization needs people that are improving with education. Competitive position can be acquired by learning and education.66
14. Put everybody in the company to work to accomplish the transformation: The transformation is everybody's job.67 By points 13 and 14 Deming emphasizes the importance of employee participation, involvement and training in the quality improvement.
Deming also lists seven deadly diseases and obstacles for the transformation. He indicates the seven diseases as follow: 1) Lack of constancy of purpose, 2) emphasis on short term profits, 3) evaluation of performance, merit rating, or annual review, 4) mobility of management, 5) management by using only visible figures, with little or no considerations of figures that are unknown or unknowable, 6) excessive medical costs, 7) excessive cost of liability. He believes that the last two problems are peculiar to United States.68 Later, Deming introduced the concept of " the System of Profound Knowledge". It has four parts that are interrelated as the concept of system implies. The four parts are application of a system, knowledge about the variation, theory of knowledge, and psychology. The first part concerns with very understanding of system optimization. Deming sees the production processes as system and they are very interrelated. The importance of understanding variation is the cornerstone of the
66 Ibid., 77. 67 Ibid., 86. 68 Ibid., 97- 98.
Deming' s method. The job of leaders requires the knowledge of the sources variation and how to reduce the variation. As a third part “theory of knowledge” concerns with operational definitions and the nature of theory vis-a-vis experience. The fourth part “psychology” refers to importance of intrinsic over extrinsic motivation.69
Despite the significant influence of Deming ideas and 14 points on the public and private sector organizations and the practice of the management theory around the world, only only a few thinkers have analyzed his theoretical contribution and theoretical base. Andersan, Rungtusanatsham and Schroeder explore that there is a theory quality management underlining Deming management method. Based on conceptual synthesis of Deming's writings, literature on the Deming management method, and the results of a Delphi study, the authors conclude that Deming method can constitute a theory composing of a set of assumptions, concepts and practices. They propose that " the theoretical essence of Deming management method concerns with an organizational system that fosters cooperation and learning for facilitating the implementation of process management practices, which in turn, leads to continuous improvement of processes, products, and services, and to employee fulfillment, both are critical to customer satisfaction, and ultimately, to firm survival".70 The defining concepts of Deming theory are explained as visionary leadership, internal and external cooperation, learning organizations, process management, continuous
69 Thomas J. Boardman J, “The Statistician who Changed the World: W. Edwrds Deming, 1900-
1993.” The American Statistician. 48 (3) (1994), 185-186, Howard S. Gitlow, “A Comparison of Japanese Total Quality Control and Deming’s Theory of Management.” The American Statistician. 48: 3 (1994), 199-200.
improvement, employee fulfillment, and customer satisfaction. The authors also determine a set of relation among these key concepts.71
1.4.2 Joseph M. Juran
Like Deming, Juran was invited to Japan after 1950 and gave seminars and lectures to the Japanese managers and engineers. He is the author of the many books on quality control and the editor of the " Quality Control Handbook" which became a seminal in the area.72 Unlike Deming who only later recognized the importance of human factor, Juran claimed that the technical aspect of quality control had been well covered but managers did not know how to manage to achieve quality. From the beginning, he stresses the importance of organization and communication of all functions.73 He explains that managing quality can be performed through three interrelated managerial processes: quality planning, quality control, and quality improvement. It is called Juran Trilogy. Quality planning is the activity of developing the goods and products required to meet customers' needs. It is under the responsibility of the quality council consisting of top management. It involves the following “universal steps”:
1. Determine who the customers are 2. Determine the needs of customer
70 Anderson, Rungtusanatham and Scroeder, “A Theory,” 483.
71 Ibid., 480.
72 Rao and et.al, Total. 40.
73 John S. Oakland, Total Quality Management (Oxford: Heinemann Professional Publishing Ltd.,
3. Develop product features that respond to customers' needs 4. Develop processes that are able to produce those product features 5. Transfer the resulting plans to the operating forces.74
The quality control is the second level of trilogy. It includes three steps that are meeting established quality goals, detecting departures from planned level of performance, and restoring performance to the planned goals.75 Quality improvement builds the last corner of the trilogy. It means "organized creation of beneficial change not "fire fighting" or "sporadic pike". The improvement may take place such forms as new product development, adoption of new technology, or revision of processes to decrease error rates. It also consists of some "universal steps":
1. Establish infrastructure to secure yearly quality improvement 2. Establish improvement projects
3. Establish a project team that is responsible for each project.
4. Provide the resources, training and motivation needed by the team.76 Juran calls the broader quality system as “total quality management.” He divides the quality management into three parts. At the top, there exists "strategic quality management" which is under the responsibility of the top management or quality council. It is the apex of the broader system of managing quality through
74 Juran, Juran. 200. 75 Ibid., 145. 76 Ibid., 21
the company.77 "Operational quality management” is middle layer and performed by the middle management.78 Finally, the bottom line is the workforce training and participation for the quality management through quality circles and quality teams.79 Juran sees upper management leadership and massive training programs as the prerequisite of the total quality management. In his view, workers cause less than 20 percent of the quality problems. In addition, all workforce should be trained in quality to enable them to participate in quality improvement projects.80
1.4.3. Phil Crosby
Phil Crosby is well known for the concept of "zero defects" which means that there is no place for defects in his method for statistically acceptable levels of quality. In other words, he rejects the idea that some degree of error is inevitable. Therefore, zero defect is a desirable and achievable goal. Crosby wrote several books but the most famous book is "Quality is Free."81 .
He articulated his view of quality as the four absolutes of the quality management:82 77 Ibid., chapter 6. 78 Ibid., chapter 7. 79 Ibid., chapter 8. 80 Oakland, Total. 288. 81 Ibid., 81.
82 Lloyd Dobyss and Clare Crawford Mason, Quality or Else (Boston: Hougton Mifflin Company,
